Expert Insights: How to Spot Trustworthy Investors in the Web3 Landscape

Finding trustworthy investors in the Web3 space can be a challenging task, but there are steps that startups can take to increase their chances of success. One of the key things to consider is conducting thorough due diligence on potential investors. This can include researching their background, checking their track record of investing in similar projects, and looking for any red flags that might indicate a problem.

Author: Mayra Candelaria

We hosted this panel discussion on “Scammers Everywhere - How to find trustworthy investors in web3?” with our  group of experts:  Oliver Schantin, CEO and Co-founder of basenode.io; Sarah Gottwald, managing director of Blockchain Founders Group; Alexandra Overgaag, Founder of Thrilld Labs; moderated by Katharina Zeuch, CEO and Founder of Luna Vision. They shared stories of fraudulent schemes they had encountered with "potential" investors and provided valuable insights on how to avoid these types of situations.

Search background information about investors
The decentralized nature of blockchain technology and the anonymity of many transactions can make it difficult to determine the legitimacy of an investor. Conducting research on an investor's background, such as their past investments and experience in the industry, can provide insight into their level of knowledge and credibility. It's also a good idea to network with other industry professionals and seek out references from other startups who have worked with these potential investors. This can help mitigate the risk of fraud and ensure that funds are invested with reputable individuals or organizations.

Investors’ interest in your project
There are several ways to tell if an investor is truly interested in your project. One indication is if they take the time to thoroughly review and understand the details of your project, including the market, technology, and team. They may also ask thoughtful and probing questions about the project, and show genuine interest in its potential and prospects. Additionally, an interested investor may also express a willingness to provide more than just financial support, such as offering valuable industry connections or expertise. Several behavioral patterns discussed in the panel might indicate red flags. 

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Summary
Research the background information of potential investors, including their past investments and experience in the industry.
Look for investors who take the time to thoroughly review and understand the details of your project.
Pay attention to investors who ask thoughtful and probing questions about the project and show genuine interest in its potential and prospects.
Consider investors who are willing to provide more than just financial support, such as offering valuable industry connections or expertise.
Identify potential strategic partners or collaborators in the Web3 space.
Ask people in the Web3 community about your potential investor! Their stories will always give you a different perspective.



About Mayra Candelaria
Mayra Candelaria is the executive assistant of Luna Vision’s CEO; while studying for a master's degree in International Business Management, she decided to get involved in the blockchain ecosystem; before that, she worked as a Commercial Analyst in the oil and gas industry sector for over 4 years. Get connected to Mayra via LinkedIn.

About Luna Vision
Luna Vision is a blockchain marketing agency with its roots in the blockchain ecosystem. We offer data-focused marketing to blockchain startups. With a deep understanding of blockchain technology, we can best promote your products created and running within the blockchain ecosystem and “translate” to your customers - may they be already included in the ecosystem or still be new here.